The presidential advisory committee has published its report on land expropriation without compensation.
The report makes allowances for the:
- provision for the establishment of an integrated planning system’ which will be responsible for the planning and coordination of the land expropriation process
- speedy distribution of land that is already owned by the government
- speedy distribution of land that is “voluntary donated” from various sources such as churches, mining houses, and commercial farmers
The conditions for land expropriation without compensation include:
- Where land is occupied or used by a labour tenant;
- Where land is held for speculative purposes;
- Where land is state-owned or owned by a state-owned entity;
- Where the owner has abandoned the land;
- Where the market value of the land is equivalent to or less than the present value of direct state investment or subsidy in the acquisition and beneficial capital improvement of the land
- Hopelessly indebted land;
- Land obtained through criminal activity;
- Informal settlement areas;
- Inner-city buildings with absentee landlords;
- Land donations (as a form of EWC); and
- Farm equity schemes.
Once the bill has been finalised it will be gazetted and undergo a full public consultation process.
This means that the earliest that land expropriation can be introduced is mid-2020. However, it will likely take much longer as the bill will face intense scrutiny from the opposition parties and members of the public.
By Crecey Kuyedzwa for Fin24
Former white commercial farmers in Zimbabwe who had their land expropriated under the fast track land reform programme in the early 2000’s have accepted government’s offer of an interim payment of RTGS$53m (R238m at current exchange rates).
In 2000 Zimbabwe expropriated land from white commercial farmers without compensation and distributed it to landless black people and the connected elite, who now own multiple farms.
The country budgeted RTGS$53m in its 2019 national budget as compensation to the former farmers, and the offer has now been accepted by a union representing them. The compensation is for farm improvements.
Zimbabwe introduced a new currency called the RTGS$, or real-time gross settlement dollar, in February. One RTGS$ can buy R4.50, according to the Reserve Bank of Zimbabwe on Monday morning.
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In a statement the Commercial Farmers Union said they had to accept the advanced interim payment as some farmers were in financial distress.
“As this is a limited fund, it is hoped that those who are not in financial distress do not take it up so as to maximise the effect on others not so fortunate.”
The total bill could run into billions and the Zimbabwean government is working with international financial institutions on how best to fund the compensation.
In its own statement on the issue, which was released over the weekend, the Zimbabwean government said by end of April 2019 the registration papers for beneficiary farmers would be complete and disbursements will commence.
Valuations for farm improvements are also expected to be completed by end of May 2019, reads the statement.
By Gaye Davis & Babalo Ndenze for EWN
South Africa’s taken the first step towards legislating for the expropriation of land without compensation, but there is a long road ahead before it becomes law.
Parliament’s constitutional review committee has adopted its final report, which recommends that Section 25 of the Constitution, the property clause, be amended to make expropriation without compensation explicit.
The report is expected to come before the National Assembly for debate and adoption in two weeks’ time.
Parliament is expected to debate and adopt the committee’s report at the end of November, but that’s just the start of a lengthy process to amend the Constitution, which could also face legal challenges along the way.
A parliamentary committee will then have to draft and process what will be the 18th Constitution Amendment Bill.
That’ll involve a fresh round of public participation and comment.
Given some parties’ and civil society organisations’ opposition to amending the Constitution, legal challenges could delay the process.
Parliament’s schedule also makes it unlikely the bill will be voted on before next year’s elections.
A final hurdle is that any constitutional amendment that affects the Bill of Rights requires a much bigger than a normal majority to pass.
Constitutional review committee co-chairperson Stan Maila said: “If you want to change anything in Chapter 2 (which deals with the Bill of Rights, and is where Section 25 appears), then you need a two-thirds majority vote in the National Assembly and six (of the nine) provinces (backing it) in the National Council of Provinces.”
At the same time, the ANC has made it absolutely clear that there’s no chance of a constitutional amendment before next year’s elections, as stated in the committee’s adopted report.
The EFF, which voted with the ANC, has also called on the amendment to be finalised before the end of the current term.
Committee member Vincent Smith said: “What is very clear is that there will be no voting on the actual constitutional amendment before elections, I hope that clarifies it. There will be no voting on it, it’s just not practically possible.”
The ANC has also dismissed opposition accusations that the party and EFF are using land expropriation as an electioneering ploy.
“Is this a sham for electioneering purposes? It’s not, because people who understand know that the process of actually amending the Constitution is not going to happen until after the elections,” Smith added.
The party added that the adoption of this final report will bring about an end to policy uncertainty while also addressing historic wrongs.
By Iavan Pijoos for News24
On Friday last week, lobby group AfriForum posted on its website that it had “obtained a list of farms identified” for expropriation. This can seen here.
It claimed it was being circulated within the rural development department.
AfriForum encouraged farmers to check if their farms were on the list and to contact the organisation so that they could “prepare for a joint legal strategy”.
Analysts at the Institute of Race Relations (IRR) believe that a list said to contain the names of farms that are to be targeted for land expropriation without compensation is “legitimate”.
“While we note the statement by the Department of Rural Development and Land Reform that ‘there is no truth to this document, the IRR, whose analysts have had sight of the list, has every reason to believe it is legitimate,” campaign manager Terence Corrigan said on Tuesday.
Corrigan said government had decided to start farm seizures before public comment and parliamentary processes were concluded.
“This is at odds – as the IRR has long warned – with assurances made by ruling party and government leaders that only unproductive land will be seized.
“The IRR has long cautioned that undermining property rights will have catastrophic economic and social ramifications,” Corrigan said.
List disputed by government
The department has disputed that a such a list exists.
Earlier this month, City Press reported that the ANC had identified 139 farms to be expropriated without compensation in the coming weeks, to test section 25 of the Constitution.
The list, shared by AfriForum, contained the names of 195 farms.
AfriForum deputy CEO Ernst Roets said the list came from a “confidential source”.
Farmers ‘worried’ about exposure
Agri SA president Dan Kriek said AfriForum’s publishing of this list was “grossly irresponsible” as it had itself acknowledged that its legitimacy was in doubt.
“They themselves don’t know if it’s valid or not,” Kriek said.
Speaking at a media briefing on Monday, Kriek said that two farmers whose farms were on the list had contacted him.
“By the way, some of those farmers were extremely agitated that they have now been exposed,” Kriek said.
He said the farmers were “extremely worried about the name of their farm [appearing] on a list”.
In 24 years, the ruling party has failed to adequately address the issues of land redistribution and expropriation. In an effort to right these wrongs, President Cyril Ramaphosa backed a motion tabled by the EFF that called for a constitutional amendment for land expropriation without compensation, even as the governing party’s amendments effectively watered down the original opposition motion.
However, the question of land reform is not one easily addressed.
“People are incredibly desperate to get a permanent place to stay and it comes with a history of requiring land,” says Lizette Lancaster from the Institute for Security Studies (ISS) in an article by News24.
She says the trend from 2013 to 2018 showed that at least 70 protests related to land invasion had turned violent.
The desperation felt by many is used as a political too to increase supporters or stir up anger against the opposition.
According to News 24, an attempted landgrab in the coastal town of Hermanus in the Western Cape on Monday turned violent, following a tense standoff with groups of protesters and police, Marchers sett a recycling plant and a police station alight, stoned cars and demolished buildings. Police used teargas and rubber bullets to disperse the crowd.
Land invasions are increasing
Since the start of the year, more than 10 areas across the country have been invaded, says News24. Earlier this month, areas north of Johannesburg, including Olievenhoutbosch, Blue Hills and Waterfall were invaded.
Image credit: News24
Other areas targeted in Gauteng included Marlboro, Alexandra, the Golden Highway near Eldorado Park, Weilers Farm, Orange Farm Extension 10 and East Lynne.
The Western Cape has also experienced invasions in Dunoon and Gugulethu.
Parliament is due to debate the issue of expropriation of land without compensation in August, after an amended EFF motion was passed to review section 25 of the Constitution.
However, according to News24, Rural Development and Land Reform Minister Maite Nkoana-Mashabane has indicated that she is preparing for a test case to expropriate land without compensation. “We cannot wait for Parliament,” she says.
The red flags
According to News24:
South Africans who own land are also wary of the arbitrary loss of land if the review leads to changes that would allow government to unilaterally claim land in the name of expropriation.
Possible conflation of land and general property is also a concern.
Banks and financial institutions, meanwhile, are concerned about what will happen to if their clients default on property loans.
With its history as an advanced and sophisticated economy on the continent, SA has a great deal of exposure to the Western economy, whose political elite have already reacted to the motion with concern.
The fear is that full scale land grabs would wreak untold damage on an already vulnerable and underperforming South African economy.
The international investor community is sure to want their investments in SA protected. While investors are not yet too alarmed by comparisons to Zimbabwe’s land grabs, some in the international community ate preparing for the worst.